To become informed about investing, you can talk to savvy investors, you can read books and articles and watch video and live presentations. To really learn (which is not the same as merely being informed), you need experience. Try some things, and along the way you will undoubtedly make mistakes from which you can learn. The secret is to keep those mistakes small.

You can learn a lesson just as well from losing $500 as from losing $50,000. But you would be surprised how many people plunge ahead as if they couldn’t possibly make a mistake. They might spend weeks researching a new car purchase yet make an investing decision involving ten times as much money after only a few minutes. To educate yourself, start by doing some reading. This includes books (text books), business web sites (CNN Money, The Economist, Yahoo! Finance, IPP Financial Times, KAFOI Online - Business & Finance, among others). This covers a wide range of alternatives and teaches you how to protect yourself from many of the biggest mistakes investors make. Sometimes reading what’s happened in the past can help you make better decision in the future. Remember in your learning process speak to people who have tried investing to learn more about "real life" experiences and advice - but take this input with a pinch of salt because circumstances are usually different.

Quite soon you will find that there’s an overwhelming amount of investment information available free on the Internet. Some of it is valuable and some of it is essentially uninformed opinion. Some of it is simply incorrect and masquerades as the truth. It can be hard to sort all this out. As you learn more, you will probably want to diversify. Do this gradually and cautiously, and be patient. Expect to make mistakes along the way, and do your best to learn from them.

If you find a successful and experienced investor who is willing to be your mentor, consider entering that sort of relationship. But always use your common sense and remember that you, not anybody else, are the boss.

If you want to hire an investment manager or advisor, choose carefully. Seek references from friends and relatives. Ask for references from lawyers and accountants. Don’t always chase after “big name” managers from “big name” investment or securities companies.

Here’s a parting thought, an excellent rule of thumb: Never invest in anything that you don’t understand.

If you do all these things, you will be well on your way to living comfortably ever after.